Question : Assertion (A): The partners are the agents as well as principals of the firm.
Reason (R): Partnership is a business relationship among two or more persons to share profits and losses of the business carried on by all or any of them acting for all.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Assertion (A) is false but Reason (R) is true

Question : Assertion (A): Salary and commission are payable to the working partners for their efforts. Reason (R): No partner shall be paid such remuneration as salary, commission, etc. if the partnership deed is silent on such matter.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Assertion (A) is false but Reason (R) is true

Question : Assertion (A): Weighted average profit method is considered better than the simple average profit method because it assigns more weightage to the profits of the latest year which is more likely to be earned in future. Reason (R): The highest weight is attached to the profit of the most recent year.

Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Option 2: Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Assertion (A) is false but Reason (R) is true

Question :

Assertion (A): Income and Expenditure Account is akin to Profit and Loss Account.
Reason (R): The Not-for-Profit Organisations are not required to prepare financial statements at the end of the each accounting period.

Option 1:

Both Assertion (A) and Reason (R) are true and (A) is correct explanation of Reason (R)

Option 2:

Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Reason (R) is true but Assertion (A) is false

Question :

Assertion (A): NPO do not maintain any capital account. Instead they maintain capital fund which is also called general fund that goes on accumulating received from year to year.
Reason (R): The capitalised items like legacies, entrance fees and life membership fees directly added to the capital fund.

Option 1:

Both Assertion (A) and Reason (R) are true and (R) is correct explanation of Reason (A)

Option 2:

Both Assertion (A) and Reason (R) are true but (A) is not correct explanation of Reason (R)

Option 3: Assertion (A) is true but Reason (R) is false

Option 4: Reason (R) is true but Assertion (A) is false